The Digital Transition: Before

1
The Digital Transition Before After
2
The Digital Transition Before After

• Who was effected by the digital transition?
• Where did these viewers go?
• How has this effected television viewing so far?

3
What was the Digital Transition and how many
people were effected?
4
What was the Digital Transition?
The government mandated that by June 12, 2009 all
television signals must be digital As a result,
any television set that did not have a digital
receiver would lose reception after that
deadline Since the majority of broadcast-only
homes had TV sets that could only receive an
analog signal they had to make a choice
5
Broadcast-Only Homes Had Three Choices
1. Subscribe to Wired Cable
Broadcast Only Home
2. Subscribe to Satellite
3. Purchase a digital converter
6
Over 10 Million Homes Made This Choice
Households With Completely Unready Sets Nielsen
People Meter Sample
of TV Homes
of TV Homes
January 08
10.5
11.9 Million
January 09
5.7
6.4 Million
July 09
1.3
1.5 Million
Source Nielsen Digital Transition presentation,
July 2009 Note Number of Homes estimated from
Nielsen People Meter Sample, actual number may
vary
7
What About the Million Homes Who Still
Arent Ready?
Households With Completely Unready Sets Nielsen
People Meter Sample
of TV Homes
of TV Homes
January 08
10.5
11.9 Million
January 09
5.7
6.4 Million
July 09
1.3
1.5 Million
Source Nielsen Digital Transition presentation,
July 2009 Note Number of Homes estimated from
Nielsen People Meter Sample, actual number may
vary
8
What About the Million Homes Who Still
Arent Ready?
Low power and translator stations were not
required to transition on June 12th Therefore, a
small section of homes in rural areas can receive
a few channels through an analog signal from
these stations - 60 of completely unready homes
as of June 28, 2009 receive at
least one low power station At this time, it
is uncertain when these stations will officially
transition
Source Nielsen Digital Transition presentation,
July 2009
9
Where Did the Homes that Made the Switch to
Digital Go?
10
Although the Majority Acquired a Digital Tuner,
Wired Cable Picked Up Over 20 of Homes
Conversions as of June 2009 ( of Homes Estimated
from Nielsen People Meter Sample)
of Converted TV Homes
Acquired a Digital Converter
65.7
Acquired Hard-Wired Cable
23.3
Acquired Satellite (DBS)
10.8
Acquired other ADS (SMATV)
0.2
Source Nielsen Digital Transition presentation,
July 2009
11
Since January 08 Wired Cable Has Picked Up Over
One and One-Half Million Homes
of Wired Cable Households (000)
71,137
70,171
69,441
966,000 homes vs. Jan 09
730,000 homes vs. Jan 08
1,696,000 homes since Jan. 08
Source Nielsen NPM
12
Wired Cable Added 365,000 More Homes
Than Satellite
of Households (000)
January 2008
August 2009
Difference
Wired Cable
69,441
71,137
1,696
ADS
31,495
32,826
1,331
Broadcast Only
11,864
10,537
-1,327
114,500
112,800
Total Homes
Source Nielsen NPM
13
Wired Cable Currently Accounts for 62 of All
Homes
of Households
January 2008
August 2009
Source Nielsen NPM
14
How Will TV Viewing Be Effected by the Influx of
New Homes to Cable? Its too early to know for
certain but short term indications are
positive
15
Broadcast-Only Homes Had Limited Viewing Options
Before
Before the transition, 100 of viewing went to
Broadcast stations
Among consumers who chose Wired Cable (only local
ad insertion option)
Route to Readiness Period Broadcast Programming (Avg. 17 channels including Hispanic) Cable Programming (Avg. 114 channels)
Broadcast Only to Wired Cable Before Transition 100 0
Share of viewing before and after transition on
television sets that were Unready during the
entire week of May 19th through May 25th, 2008
and Ready during the entire week of April 20th
through April 26th, 2009 (based on Unified NPM
Total U.S. sample during those two weeks)
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What Happens When You Give Them More Choice?
They flip the channel from Broadcast to Cable
Over 70 of their viewing moved to Cable!
Among consumers who chose Wired Cable (only local
ad insertion option)
Route to Readiness Period Broadcast Programming (Avg. 17 channels including Hispanic) Cable Programming (Avg. 114 channels)
Broadcast Only to Wired Cable Before Transition 100 0
Broadcast Only to Wired Cable After Transition 28 72
Share of viewing before and after transition on
television sets that were Unready during the
entire week of May 19th through May 25th, 2008
and Ready during the entire week of April 20th
through April 26th, 2009 (based on Unified NPM
Total U.S. sample during those two weeks)
17
Final Thoughts

• Broadcast network performance showed a decline in
  weeks after the transitiontime will tell how
  much is due to changed viewing behavior
• The Nielsen Universe Estimates will be updated on
  a rolling basis therefore in the upcoming periods
  the Wired Cable UE is expected to increase